Manitoba housing construction set to improve, analysts say

By Dane DandanFont size :

Home constructions in Manitoba are expected to boom in the next two years, according to industry experts.

The Canada Mortgage and Housing Corporation’s (CMHC) Housing Outlook conference on Wednesday gathered economists and market analysts, who predicted that employment growth could rise alongside starts of single-detached homes from 3,400 this year to 3,500 in 2016.

The projected figures were made after an 18% drop in 2014 to 3,134 units.

“Net migration to the province is forecast to remain strong in the coming years, which is expected to generate a steady pace of new household formation and housing demand,” said Lai Sing Louie, CMHC’s regional economist for the Prairie and Territories region.

However, this seems to be the opposite scenario for Winnipeg as CMHC said a “shift towards multi-family housing will slow development.”

Dianne Himbeault, the agency’s senior market analyst for Winnipeg, said builders “are expected to keep production steady at 1,875 single-detached units in 2015 before improving economic conditions encourage a modest increase to 1,900 units in 2016.”

In fact, a statement released by CMHC stated resale transactions in Winnipeg will remain “relatively stable” with the average resale price of around $287,000 in the next two years.

The CMHC also expects “modest increases” in the city’s vacancy rate.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate